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On the eve of its IPO, SpaceX invited top Wall Street fund managers for an "on-site research visit".
With just a few weeks left until SpaceX's expected record-breaking IPO, the Musk-owned space and AI giant is making a full-scale push to woo institutional investors.
According to The Information's report on Friday, several top Wall Street fund managers plan to visit SpaceX facilities in the southernmost tip of Texas and Memphis, Tennessee, during the week of April 20 for exclusive on-site tours. This event is a key part of the company's intense investor roadshow in recent weeks.
Meanwhile, SpaceX is focusing on rectifying its xAI business, which has been continuously burning through cash. Anthony Armstrong, the chief financial officer of xAI, has left the company, and it has also indefinitely put on hold a Memphis wastewater treatment facility project that cost over 80 million US dollars.
The above actions indicate that SpaceX is making the final financial and image adjustments for its IPO. However, the valuation discrepancy remains the biggest variable standing in the way of the deal - some investors have already informed the underwriting banks that the previously reported valuation of up to $2 trillion is unacceptable and urged the company to consider lowering the pricing.
The roadshow kicks off, and investors will travel to Starbase and Colossus data centers in person.
According to three people familiar with the matter, the two-day site visit will take institutional investors to Starbase in Texas, where SpaceX is building the world's largest fully reusable rocket, as well as to Colossus 1 and Colossus 2 in Memphis, the two large data centers owned by xAI.
According to informed sources, the core narrative of investor communication currently centers on SpaceX's strategic vision: integrating its unique satellite R&D capabilities with plans to deploy high-end chips in space over the next few years, while simultaneously advancing the construction of ground data centers. This "space-ground integrated" AI infrastructure narrative is the core story that SpaceX is telling to the public market.
The valuation dispute remains unresolved, and the pricing will depend on the market response.
The size and valuation of the IPO will ultimately depend on how investors receive the above-mentioned roadshow. According to The Information, some investors have expressed concerns to the underwriting banks that the reported valuation of up to $2 trillion sought by SpaceX is hard to digest and suggested considering a lower pricing range. Musk himself previously denied the related reports on X, stating that the company would not seek such a high valuation.
SpaceX's initial public offering (IPO) is currently expected to proceed in June this year. If successful, it is likely to become one of the largest new share offerings in history.
The exodus of executives at xAI continues, with a SpaceX veteran taking over the integration.
During the IPO sprint stage, the executive team of xAI is experiencing a major shake-up. According to two informed sources, xAI's Chief Financial Officer, Anthony Armstrong, has left the company. Armstrong, a former Morgan Stanley banker, joined xAI last autumn and led the construction of the company's data center and the $20 billion financing round announced in January this year.
After SpaceX completed its acquisition of xAI in February this year, Armstrong was placed under the leadership of SpaceX's Chief Financial Officer Bret Johnsen, who is currently leading the IPO process of the merged company. Before joining xAI, Armstrong was involved in the transaction advisory work for Musk's acquisition of Twitter in 2022 and served in Musk's government efficiency department in 2025.
Armstrong's departure is not an isolated case. According to The Information, since SpaceX completed its acquisition of xAI (valuing xAI at $250 billion), several top executives at xAI, including multiple co-founders, have left one after another. Currently, Michael Nicolls, a senior executive at SpaceX and the head of the Starlink team, has taken over the majority of xAI's operations and reports to Gwynne Shotwell, the president and chief operating officer. According to Business Insider, Nicolls has brought in engineering leadership from SpaceX and in an internal memo, directly stated that xAI is "significantly behind".
To cut costs, xAI has put on hold the wastewater treatment project in Memphis.
To align with the financial streamlining ahead of its IPO, SpaceX is pushing xAI to cut all non-revenue-generating expenditures. According to a person familiar with the matter, Musk recently asked xAI to accelerate its new AI model plans while also cutting costs.
The most direct manifestation is that xAI has indefinitely postponed the construction of a wastewater recycling facility in Memphis that was expected to cost over 80 million US dollars. The facility was originally planned to provide recycled water for the Colossus data center and other industrial sites. xAI officially broke ground on the project last October.
According to the local media Daily Memphian, the engineer in charge of the project has confirmed that it is in an "indefinite suspension" state. Musk later responded on X, saying: "We need to focus on completing Colossus 2 and ensuring its extreme stability before building the water recycling plant."
However, this decision poses a political backlash risk in Memphis. The Colossus data center of xAI has become a significant political issue in the local area. The wastewater treatment facility was originally an important measure for xAI to demonstrate its commitment to reducing environmental impact to the outside world. The suspension of the project is expected to trigger a strong reaction in the local community.
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